ROADSHOWS
“All agreed, including those who had been in the business 30 years or more, that the system has changed drastically but yet, frustratingly, is now slower” Different business models around the table were discussed, for example conveyancers who did and who didn’t pay referral fees, and some who still charge an hourly rate. But if in the chain, different lawyers worked to different business models, that could affect the speed and efficiency of that transaction. All agreed, including those who had been in the business 30 years or more, that the system has changed drastically but yet, frustratingly, is now slower. Pepper asked if one single factor such as pressure on fees, regulation, lack of honesty, or whether a combination of factors had contributed to the process becoming slower? HIPs were seen as flawed but a good idea, and it was agreed that to have all the information about a property in one place, and on the cloud as ‘house sale ready’, would be a huge step forward. Lisa Mehta felt conveyancers should put greater value on the work they do and the technical aspects of the job, saying, “There’s a perception that conveyancing involves ticking a few boxes and moving a few pieces of paper around each day. So again it boils down to education of clients, agents, even litigation colleagues, on the complexity of the process.” The discussion moved on to what do homemovers really want? The group was unanimous in agreeing that clients looking to buy a property simply wanted to get the move done and move into their new home. Dally said, “To a buyer it’s not about trawling through small print detail that we might have been obligated to send to them. They don’t read it. Yet there may be important information they need to be aware of when they come to sell.” Tomasik agreed, “But that could be 20 years away so is no priority to them at the point of purchase. All they’re interested in are the carpets and curtains!” Pepper added that nobody wakes up on one morning and says, ‘what I want to do is take out a 25 year financial commitment that I have to repay or my house will be repossessed’, what they wake up and say to themselves is ‘I want to buy that dream house’. He added, “And everything else that goes with that is just something they’re forced to do. And that’s the point at which the devaluation of the conveyancer’s role starts.” The discussion turned to whether regulation was a positive thing that created higher standards or just negative red tape that got in everyone’s way and added to the cost. Tomasik said that
regulation is required and necessary but it needs policing, saying, “I think the Conveyancing Quality Scheme is a good thing but shouldn’t it be mandatory?” The table agreed and in answer to Pepper’s question, all said they were CQS compliant. Inevitably, the topic of AML came up with duplication throughout the whole AML process seen as a problem, with agents, brokers, lenders and solicitors all doing AML checks, with clients becoming fed up at being asked so many times. Mehta pointed to apps that can now check AML via a portal, which vastly improves the system. Dally said that it goes back to everybody assuming risk, “Because if the money is in the bank why have the bank not verified that, why do we have to then verify where the client got the money from?” Fawke agreed, saying banks needed to take more control of movements and accounts, particularly money that’s coming from international sources. “There’s no accountability and it becomes our responsibility – again!” The group touched on the fact that there is a definite skills shortage in conveyancing, with a large reliance on having to ‘grow your own’. There was a feeling of an ongoing problem with the younger generation of entrants not wanting to stay in a job for more than two years, so staff turnover has increased more recently. The feeling was that law graduates, who now come through two systems, apprenticeships and university, don’t see residential conveyancing as a ‘sexy’ area of law in which they wish to practice. Pepper asked if outsourcing could be the answer to the skills shortage. Some did outsource, others not. Dally said as yet they don’t outsource but know firms that have been doing it for over ten years. Davis said she was talking to a firm who had spent 18 months hand-selecting offshore expertise but were now reaping the benefits of quicker turnaround. In summary Tomasik said that despite the common problems all law firms seemed to face, she still got a buzz at the end of a transaction for a first time buyer, after guiding them through it to then hand over the keys. Pepper then summarised the key discussion topics, including better communication with the consumer; better transparency; education; getting rid of the blame culture; and one version of the truth.
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Attendees: Chair
Joe Pepper, Chief Executive Officer (CEO) tmgroup Clare Yates Senior Business Development Manager tmgroup Suman Dally Partner Shoosmiths LLP Julie Davis Head of Residential LCF Residential Esther Fawke Senior Manager Countrywide Plc Lisa Mehta Partner Brethertons Julie Tomasik Director, Ansons & Specialist Advisor on Conveyancing to CILEX
“I think the Conveyancing Quality Scheme is a good thing but shouldn’t it be mandatory?”